Day trading is a risky job if you enter into market and place order without any research. One can make or loose money in a day.
A Day trader should be absolutely clear about the amount of work, discipline, his risk appetite research, knowledge and sheer luck that is required to be Successful.
Day Trading Techniques for Individuals ( Must Follow )
I will Trade small.
I will not Trade without stoploss.
I will win and walk out.
Techniques
1. Trend following
Trend following, a strategy used in all trading time frames, assumes that stocks which have been rising steadily will continue to rise, and vice versa. The trend follower buys a stock which has been rising, or short-sells a falling stock, in the expectation that the trend will continue.
2. Playing News
Playing news is primarily the realm of the day trader. The basic strategy is to buy a stock which has just announced good news, or short-sell on bad news. Such events provide enormous volatility in a stock and therefore the greatest chance for quick profits (or losses).
3. Range Trading
A range trader watches a stock that has been rising off a support price and falling off a resistance price. That is, every time the stock hits a high, it falls back to the low, and vice versa. Such a stock is said to be "trading in a range". The range trader therefore buys the stock at or near the low price, and sells (and possibly short sells) at the high.
4. Technical analysis
A method of evaluating securities, stocks, bonds, forex, futures, options, indexes, currencies and commodities. or any item that has a price and a market by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts to identify patterns that can suggest future activity.
Technical analysts believe that the historical performance of stocks and markets are indications of future performance.
In a shopping mall, a fundamental analyst would go to each store, study the product that was being sold, and then decide whether to buy it or not. By contrast, a technical analyst would sit on a bench in the mall and watch people go into the stores. Disregarding the intrinsic value of the products in the store, his or her decision would be based on the patterns or activity of people going into each store.
A Day trader should be absolutely clear about the amount of work, discipline, his risk appetite research, knowledge and sheer luck that is required to be Successful.
Day Trading Techniques for Individuals ( Must Follow )
I will Trade small.
I will not Trade without stoploss.
I will win and walk out.
Techniques
1. Trend following
Trend following, a strategy used in all trading time frames, assumes that stocks which have been rising steadily will continue to rise, and vice versa. The trend follower buys a stock which has been rising, or short-sells a falling stock, in the expectation that the trend will continue.
2. Playing News
Playing news is primarily the realm of the day trader. The basic strategy is to buy a stock which has just announced good news, or short-sell on bad news. Such events provide enormous volatility in a stock and therefore the greatest chance for quick profits (or losses).
3. Range Trading
A range trader watches a stock that has been rising off a support price and falling off a resistance price. That is, every time the stock hits a high, it falls back to the low, and vice versa. Such a stock is said to be "trading in a range". The range trader therefore buys the stock at or near the low price, and sells (and possibly short sells) at the high.
4. Technical analysis
A method of evaluating securities, stocks, bonds, forex, futures, options, indexes, currencies and commodities. or any item that has a price and a market by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts to identify patterns that can suggest future activity.
Technical analysts believe that the historical performance of stocks and markets are indications of future performance.
In a shopping mall, a fundamental analyst would go to each store, study the product that was being sold, and then decide whether to buy it or not. By contrast, a technical analyst would sit on a bench in the mall and watch people go into the stores. Disregarding the intrinsic value of the products in the store, his or her decision would be based on the patterns or activity of people going into each store.
Source: Indian Advisory Stock Exchange
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